10 Ways Outsourcing Can Save You Money


Before the emergence of the current technological boom, larger companies have been able to leverage their position on top through outsourcing. But now the world is connected in such a profound way that small businesses tend to gain the most advantages from outsourcing. Most notably, saving money is where the real advantage lies with outsourcing. It provides a level playing field for new businesses. Here are ten ways that outsourcing can save your business money.

1. Lowers Initial Costs

Lowering the initial costs of performing a non-core task is probably the biggest reason that companies outsource. The upfront costs are much lower than hiring an employee to perform the same tasks. For example, it’s much cheaper to hire a virtual assistant to perform 10 hours a week worth of work than to hire someone to do the same job.

2. You Get Greater Skills for Lower Costs

As long as you choose a reliable and proven provider, you will get access to someone who specializes in the tasks you are looking to complete at a lower cost than trying to hire in-house. It’s like buying a higher quality product for a lower cost. When you look at it like that, it seems like an obvious choice.

3. Time Zone Difference

One cost-saving factor that many people don’t consider when outsourcing is that your provider will likely be in a different time zone. Sometimes this can be a huge benefit because it means that your business is still getting stuff done even when you’re not in the office. While this might not save money in a traditional sense, it does lead to greater profits.

4. You Can Focus on Growth

As your business grows, you’ll find that the workload increases exponentially. You need all of your time to focus on this growth. You have two choices here: either lose out on a huge boost in profit by devoting your time to non-core tasks or delegate those tasks through outsourcing. In this scenario, outsourcing saves you countless money in lost profits.

5. Boost Productivity and Efficiency

Businesses that are run efficiently are going to spend less money. A business will hemorrhage money through inefficient business processes. Outsourcing providers are capable of performing specific tasks at a much more efficient rate. You don’t want to spend money going back to fix mistakes. You want the work done right.

6. Lowers Risk

Lowering risks is one of the best ways to cut costs in the business, even though many people seem to miss this truth. Payroll is a great example. When you outsource payroll, it saves money that would otherwise have to be spent on liability insurance and the risk of being sued for mistakes.

7. Improved Customer Services

Customer service is the cornerstone of any business. You have to invest in this area if you have any chance of being successful. By outsourcing, you can set up 24/7 availability for customer support. This will save you a lot of money as opposed to doing this completely in-house.

8. Better Management of Staff

Rather than hiring managers and paying them a lot of money, you can outsource non-core tasks and focus your efforts on management.

9. Plan your Budget

Outsourcing providers can help you plan your budget more efficiently. In fact, I’ve seen companies get help in this area and cut their costs upward of 20%!

10. You Pay Only for Services Rendered

Finally, when you hire in-house employees to work in areas of your business, you’re paying for more than services rendered. You’re essentially paying for their 30 minutes worth of breaks every day, a half-dozen trips to the water cooler, and who can forget about those morning gossip sessions with other co-workers. By outsourcing a task, you are paying only for the services being rendered. When the work is done, you pay a set fee based on the actual work.


As a business house catering to a particular customer group, you cannot afford to build a team that can support end-to-end business delivery. This is the reason; ‘Outsourcing’ has become an essential reality not only for the large organizations but also to the small-scale solution providers. Empowering businesses in lowering the initial investment, knowing the budget limits, and obviously getting the benefit of time zone difference, Outsourcing can certainly help with sustainable business growth.

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